1.  The Company has not complied with the guidelines those are made
 applicable to the listed Companies by Securities and Exchange Board of
 India, as the Company has opted for delisting from Stock exchanges and
 also not paid the Listing Fees.
 
 2.  a) Term Loans from Union Bank of India are secured by equitable
 mortgage of the
 
 Land and Buildings of the Company and further secured by hypothecation
 of all the fixed assets of the Company both existing and future on
 pari-passu basis and also guaranteed by two of the Directors of the
 Company.
 
 b) Working Capital Loan from Union Bank of India is secured by
 hypothecation of Stock of Provisions, Wines, Consumable Stores and Book
 Debts of Dolphin Hotel at Visakhapatnam and guaranteed by three of the
 Directors of the Company in their personal capacity to the extent of ?
 25.00 Lakhs.
 
 3.  Interest on Unsecured Term Loan from a Director amounting to ?
 36,35,47,043 up to 31st March, 2006 is not provided in the books of
 accounts. Consequent to that unsecured loans are under stated and
 Reserves and Surplus are over stated by that amount.
 
 4.  Donations shown under the head General expenses” include the
 amounts given to the following political parties.
 
 i) Communist Party of India Marxist Leninist ? 15,000 (Previous year ?
 10,000)
 
 ii) Communist Party of India (Marxist) ? Nil (Previous Year ? 10,000)
 
 5.  a) Depreciation on the assets of the company is provided on
 Straight line basis/written down value method as per Schedule XIV to
 the Companies Act 1956. However fixed Assets costing rupees Five
 thousand or less are fully depreciated in the year of acquisition.
 
 b) Buildings constructed on lease hold land are depreciated over the
 Primary Lease period which is 15 years.
 
 c) Costs incurred towards purchase of Computer Software being in the
 nature of intangible assets are amortised over its estimated life of
 five years.
 
 6.  Buildings costing ` 1,76,39,622 (previous year ` 1,76,39,622) are
 on leasehold land.
 
 7.  Fixed Deposits shown under the head Cash and Bank balances include
 deposits of Rs 36,14,830/- (previous year ` 36,14,830/-) the receipts
 in respect of which are in lien with bankers towards margin for
 guarantees issued by them.
 
 8.  Deposits recoverable include ` 15,79,886/- (previous ` 15,79,886/-)
 paid to Ushakiron Movies Limited, a Company which is under the same
 management towards Security Deposits.  Maximum amount due at any time
 during the year is ` 15,79,886 /- (previous year ` 15,79,886/-).
 
 9.  The Company is in the process of obtaining confirmations from the
 debtors.
 
 10.  Disclosure of Sundry Creditors under current liabilities is based
 on the information available with the Company regarding the status of
 the suppliers as defined under the Micro, Small and Medium Enterprises
 Development Act, 2006” and relied upon by the Auditors.
 
 11. In the opinion of the management, the current assets, loans and
 advances are expected to realise at least the amount at which they are
 stated, if realised in the ordinary course of business and provision
 for all known liabilities have been adequately made in the accounts.
 
 12.  Estimated amount of contracts remaining to be executed on Capital
 Account and not provided for Rs 2,15,012 (Net of advances) (Previous
 year Rs Nil)
 
 13.  Remuneration paid to Managing Director included in other heads of
 account (Minimum remuneration as per Schedule XIII of the Companies
 Act, 1956)
 
 14.  Contingent Liabilities not provided for on account of
 
                                          Current year    Previous year
                                              Rs                Rs
 
 a) Claims against the company not
 acknowledged as debts :                   5,09,16,395      3,73,75,332
 out of which the company has
 counter claim to the extent of           (3,89,09,346)    (3,47,70,371)
 
 b) Guarantees given by the bankers        3,27,64,830      3,28,64,830
 
 c) Guarantees given by the company          38,82,216        38,82,216
 
 15. The Company has imported certain goods under the Export Promotion
 Capital Goods scheme of the Government of India at concessional rates
 of duty on an undertaking to fulfill ` 1,41,16,680 (Previous Year Rs
 3,83,87,858) which is to be fulfilled within next 5 years. Non
 fulfillment of the balance obligation within the said period render the
 company liable to pay the balance duty of ` 17,64,585 (Previous Year `
 48,54,438) and other penalties under the above referred scheme.
 
 16.  Disclosure relating to the Gratuity (funded) liability as per
 Accounting Standard 15 Employee Benefits”
 
 The rate of escalation in compensation considered in the above
 valuation is estimated taking into account inflation, seniority,
 promotion and other relevant factors and the above information is
 certified by an actuary.
 
 17.  As the Company’s main business is limited to only Hospitality
 services, there is no separate reportable segment as per the Accounting
 Standard (AS-17) on Segment Reporting” .
 
 18.  The details of the transactions with related parties to be
 disclosed as required by Accounting Standard- 18 are as follows:
 
 a) Names of Related parties and description of relationship
 
 1.  Key Management Personnel
 
 : 1.  Sri Ramoji Rao, Chairman
 
 2.  Smt. Ch. Vijayeswari, Managing Director
 
 2.  Relatives of Key Management Personnel
 
 : 1.  Smt. Ch. Rama Devi (Wife of Chairman)
 
 2.  Sri Ch. Kiron (Son of Chairman)
 
 3.  Sri Ch. Suman (Husband of M D)
 
 4.  Smt.Ch. Sailaja (Wife of Ch. Kiron)
 
 3.  Associates
 
 : 1.  Margadarsi Chit Fund Pvt. Ltd.
 
 2.  Ushodaya Enterprises Pvt. Ltd.
 
 3.  Ushakiron Movies Ltd.
 
 4.  Colorama Printers Pvt. Ltd.
 
 5.  Margadarsi Marketing Pvt. Ltd.
 
 6.  Margadarsi Housing Pvt. Ltd.
 
 7.  Margadarsi Financial Services Pvt. Ltd.
 
 8.  Various business concerns of Ramoji Rao (HUF)
 
 9.  Ushodaya Shipping Pvt. Ltd.
 
 10.  Variety Entertainment Pvt. Ltd.
 
 11.  Suman Advertising Pvt. Ltd.
 
 12.  Eenadu Relief Fund
 
 13.  M S M S Pvt. Ltd.
 
 14.  Ramadevi Trust
 
 19.  As required by Accounting Standards (AS 28) on Impairment of
 Assets” as notified by Companies (Accounting Standards) Rules 2006, (as
 amended), the management has carried out the assessment of Impairment
 of assets and no impairment loss has been recognized during the year.
 
 20.  In the absence of convincing evidence that the Company will pay
 normal Income Tax within the specified period, the Minimum Alternative
 Tax (MAT) credit is not recognized during the year as an asset and the
 situation shall be reviewed at each Balance Sheet date.
 
 21.  Additional information as required to be given pursuant to the
 provisions of Part II of Schedule VI to the Companies Act, 1956 :
 
 a) Since it is not practicable to give quantity wise details in respect
 of purchase, consumption, turnover, stock, etc, the Department of
 Corporate Affairs in exercise of its power conferred by sub-section (4)
 of section 211 of the Companies Act, 1956 by its order No.
 46/3/2011-CL-III, dated 28th January, 2011 has exempted the company
 from giving such details for the year. However, the said order requires
 the company to disclose certain additional particulars, which are duly
 disclosed in financial statements.
 
 22.  The other particulars required under part II of Schedule VI to the
 Companies Act, 1956 are not applicable to the company.
 
 23.  Previous year’s figures have been regrouped and reclassified
 wherever necessary to make them comparable with those of current
 year.